Company from Upper Austria

Wholesaler for agricultural technology is now bankrupt

The company, which slipped into insolvency, traded in agricultural machinery (symbolic image).

(Bild: EXPA Pictures)

For fear of supply bottlenecks, a lot of goods had been put into stock. However, because demand did not materialize and costs went up, a wholesaler of agricultural equipment from Upper Austria had no choice but to file for insolvency. 

Reorganization proceedings have been filed for the assets of ATG Agrartechnikgeräte GmbH in Hörsching, announced the Kreditschutzverband 1870 on Friday afternoon. According to the creditor protection association, the company from Upper Austria has around 2.946 million euros in liabilities. This contrasts with assets amounting to 739,000 euros.

Stockpiling a lot of goods out of fear
What are the reasons for the insolvency? The insolvency application mentions the high stock levels, which were purchased out of fear of supply bottlenecks and which were partly financed by third parties. However, the fact that sales collapsed as a result and there was too little demand, while at the same time personnel costs in sales rose, led the company into the difficulties that now made bankruptcy inevitable.

Four employees and 23 creditors are affected by the insolvency of the wholesaler for agricultural and forestry machinery. What happens now? The restructuring plan will offer creditors a 30 percent quota.